``"Attempting to use U.S. Treasury securities as a coercive tool would have limited effect and likely would do more harm to China than to the United States," according to the report, which was sent to congressional committees by Defense Secretary Leon Panetta. "As the threat is not credible and the effect would be limited even if carried out, it does not offer China deterrence options" in a diplomatic, economic or military situation, the Pentagon found.'' -- This is all assuming of course they don't "get out from under" Treasuries in the background, e.g., by accumulating enough gold...